August 11, 2020

How much can LED lighting save?

How is the price of LED lighting implemented? What are the sources and benefits of the transformation of investment funds? This is the market's biggest concern for the large-scale promotion of LED.

Take Qinshang Optoelectronics 100W LED street lamp as an example, the cost of purchasing LED street lamps was 2500-3000 yuan a year ago. The current street lamp price dropped to 1500-1800 yuan, and the payback period for replacing 800-1200 yuan high-pressure sodium lamps was reduced to 2 - 3 years. The LED street light energy-saving 50%, life expectancy reached 9 years, during which the lamps do not need to be replaced. The cost-effectiveness of using LED for new street lamps is already very obvious.

With regard to the funds for transforming and replacing LED street lamps, Guangdong proposed in the "Implementation Plan for Promoting the Use of LED Lighting Products" that local finances will solve the sources of funding for LED lighting renovation projects from the additional income of urban public utilities collected with electricity charges.

According to the data from the LED demonstration project in the past two years, the Guangdong Science and Technology Department has estimated the economic benefits and energy-saving and emission reduction effects of the LED street lamp retrofit project.

According to the calculation of 2 million LED street lamps, before the renovation, the electricity cost of street lamps will reach 2 billion yuan each year, and the replacement cost of lamps and lanterns will reach 500 million yuan each year, so that the total annual cost will reach 2.5 billion yuan. After the renovation, the total annual cost savings will be 1.5 billion yuan, including a 50% savings in electricity bills and a 500 million yuan lamp replacement fee.

The total investment for the transformation of 2 million LED street lamps was 4.89 billion yuan, and the total loan interest rate totaled 6.1 billion yuan. In the 9-year life span of the LED street lights, a total of 13.5 billion yuan will be saved, and local governments will receive 7.4 billion yuan in energy savings.

In addition, 10.8 billion kwh of electricity will be saved, equivalent to saving 3.79 million tons of standard coal, reducing sulfur dioxide emissions by 70,000 tons, reducing carbon dioxide emissions by 2.68 million tons, and reducing soot emissions by 70,000 tons.

“It can be seen that extracting energy-saving benefits in proportion to the additional income of urban public utilities levied with electricity charges can fully cover the investment in LED retrofitting and can produce significant economic benefits and energy-saving and emission reduction effects.” Director of Science and Technology Department of Guangdong Province Li Xinghua said.

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